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Government reforms (2): Good work plan (response to Taylor Review) updated

What do we already know?

The Taylor Review of Modern Working Practices (‘the Taylor Review’), made detailed recommendations for reform of UK employment law in respect of those who are not engaged as traditional employees, both in the “gig economy” and elsewhere.  For further detail on the background of this Review please see our updates here.

We updated you in our February 2018 Newsletter Government reforms (2): Employment status – Government response to the Taylor review, that the Government had published its response to the Taylor Review, which was the ‘Good Work’ plan in which the Government set out its plans on taking forward the Taylor Review proposals.

At this time, the Government also launched four consultations to seek views on the appropriate approach to implementation:

 

What’s new?

The Government has updated its ‘Good Work Plan’, available here.  The Plan draws on the feedback to its consultations.  There is no timetable yet for the majority of the changes and no legislation is included in the Plan. The legislation to implement some of these changes will need to be closely examined when it is eventually published, but these proposals will make the next couple of years an interesting time for employers.

The headlines of the Good Work Plan are:

Any clarification of employment status would be very welcome but the Good Work Plan does not go into any detail on what the new aligned test might look like. The Taylor Review recommended that the employment status test should place more emphasis on control and less on the (often rarely exercised) right of substitution, something discussed in the consultation which took place earlier in the year.

 

In addition, all employment businesses are going to be required to provide agency workers with a Key Facts Page. Specific information will have to be given on the type of contract, pay and deductions.

Also, as mentioned above the hardly ever used aggravated breach penalty will be increased from £5,000 to £20,000 in April 2019 and sanctions imposed on employers who have lost a second Tribunal case on similar grounds to a previous claim. The Government also plans to ‘name and shame’ employers that fail to pay Tribunal awards.

 

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